ALAPPUZHA: The houseboat industry in Alappuzha is worried over the impact of GST being implemented from July 1. The houseboat sector will come under the 18 percent tax rate instead of 15 percent at present. The operators had urged Finance Minister Dr T.M. Thomas Isaac to include the sector in the tour operator category, instead of in the luxury hotel tax slot.
Mr K. Jayavijayan, general secretary, All-Kerala Houseboat Owners' Association, said the houseboat sector was included in hotel category. The association had wanted the GST rate be reduced to five per cent as the industry has been facing a crisis due to the liquor curbs. Mr T.G. Raghu, secretary, Alappuzha Tourism Development Cooperative Society, pointed out that the business would be hit if the tax is not relaxed. "The customers will not absorb the price increase," he felt.
The houseboat industry was struggling to stay afloat due to the competition from Sri Lanka. The international tourist flow to Kerala has plummeted of late. As many as 1,000 houseboats ply in Alappuzha alone through the Vembanad lake every day. "We will know the tax rate only when it is implemented. If it's 18 percent, it would hit us hard. So we have requested the finance minister to include us in the tour operator category which comes under five percent tax rate," said Mr Tomi Pulikkattil, a houseboat owner. The industry is currently paying 15 per cent tax. It employs over 5,000 people directly
